MAUMEE, Ohio — Dana Holding Corp. announced its second quarter 2010 results. The company reported quarterly net income of $9 million, compared to break-even net income one year ago. Second-quarter adjusted EBITDA was $154 million, a substantial improvement over the $94 million reported for the same period in 2009, and adjusted EBITDA margin for the quarter improved to 10.1 percent, compared with 7.9 percent one year ago. Sales for the period were $1.526 billion, up from $1.190 billion for the second quarter last year.

Dana generated free cash flow of $137 million during the second quarter, which compares to $73 million one year ago. This marked the fifth consecutive quarter in which the company achieved positive free cash flow. The company increased its related  guidance, indicating that it expects to achieve positive free cash flow of more than $100 million in 2010.

During the second quarter, total cash improved by $33 million from the prior quarter to $1.059 billion. Since the end of 2009, total debt has been reduced by $64 million to $939 million at June 30, 2010. The company's net cash position of $120 million at the end of the quarter is an improvement of $176 million from Dec. 31, 2009. Total liquidity improved by $215 million from the end of 2009 to $1.343 billion at June 30.

"I am particularly pleased with our progress during the past quarter, as evidenced by the swing to positive net income and achieving positive free cash flow for a fifth consecutive quarter," said Dana President and Chief Executive Officer Jim Sweetnam. "Combined with substantial operating profit improvements and the effects of our continued restructuring efforts, the increase in revenues this quarter enabled us to make further progress in reinforcing our strong cash position."

"Overall, our second-quarter results underscore the consistent improvements that are positioning Dana for profitable growth moving forward," he added.

Six-Month Results

Adjusted EBITDA for the six months ended June 30, 2010, was $262 million, up significantly from $110 million during the period last year. Sales for the first half of 2010 were $3.034 billion, which compares with $2.406 billion during the same period one year ago. Dana narrowed its first-half 2010 net loss to $22 million, compared with a net loss of $157 million in 2009.

Highlights:

• Delivered positive net income of $9 million

• Achieved adjusted EBITDA of $154 million on revenues of $1.5 billion with adjusted EBITDA margin of 10.1 percent

• Attained significant margin improvement with substantial increases in all business segments

• Generated free cash flow of $137 million, marking fifth consecutive positive quarter

• Increased net cash position to $120 million

• Raised positive free cash flow guidance to more than $100 million in 2010